ENVALITH
株式会社中村屋 logo

NAKAMURAYA CO., LTD.

2204Standard MarketFoods

株式会社中村屋 logo
NAKAMURAYA CO., LTD.2204

Business

Nakamuraya Co., Ltd. is a long-established food manufacturer founded in 1901, listed on the Standard Market of the Tokyo Stock Exchange. In its core confectionery business (approximately 70% of net sales), the company manufactures and sells Japanese and Western confectionery as well as Chinese-style steamed buns (chuka-man), with convenience stores and mass retailers as its primary sales channels. In the food business, the company manufactures and sells retort pouch foods for both retail and commercial use, and operates a directly managed restaurant at the Shinjuku Nakamuraya main store. The real estate leasing business secures stable income through the Shinjuku Nakamuraya Building and leasehold arrangements. Sales to Seven-Eleven Japan account for 38.4% of net sales, with chuka-man for convenience stores forming the foundation of the business.

Business Model

The core business is manufacturing and wholesaling of confectionery and food products made at in-house factories, sold through convenience stores (with a 38.4% sales ratio to Seven-Eleven), mass merchandisers, and commercial-use channels. Directly-operated restaurants serve a brand-communication function. The real estate leasing business (full occupancy at the Shinjuku Nakamuraya Building, fixed-term land lease rents) supplements stable earnings, supporting the overall company operating margin. The company invests ¥738 million in R&D expenses to maintain product development capabilities centered on fermentation and dough-wrapping (anpan-filling) technologies.

Company Strengths

Possesses manufacturing know-how for Chinese steamed buns centered on fermentation and filling-wrapping technology, with sales to Seven-Eleven Japan accounting for 38.4% of net sales (¥14,326 million). The company has established a development and mass-production system for microwave-compatible individually packaged products, and continues to implement product strength and promotional measures aimed at strengthening year-round sales.

By maintaining full occupancy at the Shinjuku Nakamuraya Building, utilizing a general fixed-term land lease (August 2023 to December 2098) on the former Tokyo business site (Sasazuka, Shibuya-ku, 8,156 sqm), and a business-purpose fixed-term land lease on the Musashi Plant site, the company secures stable earnings of ¥913 million in net sales and ¥428 million in operating profit from its real estate leasing business.

Building on filling-paste making, fermentation, and cooking technologies accumulated over more than 100 years of history, the company continuously launches new products in both the confectionery and food businesses. It invested ¥738 million in research and development, achieving market launches such as the "Ippin Dorayaki" and "THE Noukou" series. Restaurant cooking technology has also been repurposed for collaborative menu items for cafe chains and for the development of private-brand products for commercial use.

ENVALITH's Perspective

Revenue of ¥37,351 million (up 0.3% year-on-year) showed only marginal growth, while operating profit reached ¥1,324 million (up 23.7% year-on-year), a significant increase in profit. Reductions in cost of sales (from ¥23,549 million to ¥23,374 million) and control of SG&A expenses were effective. However, the operating profit margin remained at just 3.5%, an absolute level that is low for a food manufacturer, and sustained improvement remains an ongoing challenge.

In FY2026 (ending March 2026), extraordinary losses included a valuation loss on shares of affiliated companies of ¥405 million and plant restructuring-related expenses of ¥21 million. In addition, equity in losses of affiliates expanded from ¥94 million in the previous period to ¥311 million in the current period, indicating that deteriorating performance at affiliated companies is affecting the company's earnings. The investment amount in affiliates stood at zero as of the fiscal year-end, and continued attention is needed regarding whether equity-method accounting will continue to apply going forward.

The full-year forecast for FY2027 (ending March 2027) projects revenue of ¥37,700 million (up 0.9% year-on-year) and operating profit of ¥1,400 million (up 5.8% year-on-year), indicating moderate growth. However, for the cumulative first half (through the second quarter), the company forecasts a substantial operating loss of ¥1,920 million and a net loss of ¥1,260 million. Cash flow from investing activities in FY2026 (ending March 2026) showed an outflow of ¥6,261 million (including ¥2,273 million for acquisition of property, plant and equipment and ¥4,000 million placed in long-term deposits), a sharp increase from the previous period, requiring performance management that accounts for the growing capital expenditure burden and seasonal effects.

Growth Strategy

Strengthening the earnings base through four pillars: establishing Chinese steamed buns as a year-round staple, expanding sales of daily confectionery, developing food service (ready-to-eat) channels, and utilizing real estate assets.

Promoting the convenience of microwave-ready individual packaging in both mass retailers and convenience stores to reduce dependence on seasonal demand. Driving brand awareness through the launch of seasonal limited-edition products such as "Spicy Pork Bun" in spring/summer and "Rich Cheese Pork Bun" in autumn/winter, along with in-store microwave sampling promotions. For convenience stores, also expanding into character collaborations and new categories (cheese bagels).

The renewal of the dorayaki lineup ("Ippin Dorayaki") generated buzz through media exposure, contributing to increased sales. Leveraging its bean paste manufacturing technology, the company is strengthening its next-generation core product lineup, including "Ogura Tsubuan Monaka," "Yaki Karinto Manju," "Anko Pie," and "Milk Man." New products such as "Tsuki no Ka Kuri" have also been launched to address growing demand for casual gifts.

The launch of new private-brand retort curry products for specialty retail chains significantly contributed to increased sales in the Food Business in FY2026 (ending March 2026) (up 7.6% year on year, with operating profit up 42.1%). The company continues to advance curry product development for convenience stores and collaborative menu development for café chains. In retail food products, it aims to acquire new users through new products such as "Shef ga Shitateta," "THE Noko," and "Karako Jizai Mabo Tofu."

Utilization of leasehold rights on the former Tokyo business site and Musashi plant site has accumulated long-term deferred income of ¥9,694 million, securing a stable cash flow base. Land increased by ¥1,438 million year on year at the end of FY2026 (ending March 2026), and the company continues to pursue the policy of maximizing utilization of its held land assets under the medium-term management plan "Nakamuraya Vision 2027."

Continuing pop-up store openings for the caramel dessert specialty shop "CARAMEL MONDAY" at terminal stations and commercial facilities to capture souvenir demand and enhance brand recognition. Newly launched the sister brand "CARAMEL MONDAY no Asa" for mass retailers, aiming to expand the new customer base by capturing everyday-use demand.

Last updated: July 19, 2026